Future of Sustainable Business

As sustainability evolves from an ethical consideration to a business imperative, organizations are reimagining their engagement with communities and supply chains. Since 2022, the Croda Foundation, as part of the __[Action for Sustainable Derivatives](https://sustainablederivatives.org/)__ (ASD) Impact Fund at Tides Foundation, has been collaborating with Kaleka to promote sustainable sourcing in Indonesia. This partnership supports the Sustainable Village Program in Seruyan District, Central Kalimantan—a Mozaik initiative led by a multistakeholder process towards a jurisdictional approach to certification, ensuring that commodities from this region are produced sustainably.

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## **Connecting with Communities to Strengthen Sustainable Practices**

From February 10-13, 2025, representatives from Croda Foundation joined Kaleka in exploring sustainable development initiatives in Central Kalimantan. This visit was more than an opportunity to witness on-the-ground sustainability efforts—it underscored the evolving role of responsible business in driving environmental and social impact.

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During their visit, the team engaged with various community-driven sustainability efforts. Their visit to Mendawai Seberang highlighted how agroforestry plays a crucial role in protecting forests while providing farmers with economic stability. In Rungau Raya, they observed the operations of nurseries and the Product Development Center (PDC), where farmers receive training in sustainable agriculture and value-added processing. A stop at Sungai Undang showcased how Nipah sugar production is revitalizing mangrove ecosystems while creating alternative livelihoods for coastal communities.

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 ![The Croda team visits the restoration site managed by local farmergroups in Pematang Panjang.](https://petani.s3-ap-southeast-1.amazonaws.com/blogentity/f75b15e3-ecf0-4d75-912e-35f973586d50.jpg)

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Pematang Panjang was another highlight of the visit, where community-led restoration efforts have rehabilitated 27.5 hectares of degraded land, spanning both lowland dry and mangrove ecosystems. In Batu Agung, discussions with smallholders shed light on the realities of jurisdictional certification and what’s needed to make sustainability viable at the local level. Wrapping up the visit, Croda Foundation representatives explored Tanjung Puting National Park, where conservation efforts continue to protect the Bornean orangutan habitat, further reinforcing the connection between responsible sourcing and biodiversity preservation.

### **Sustainability as a Core Business Imperative**

The conversations throughout the visit reinforced the idea that **sustainability is no longer an add-on—it is a long-term business imperative.** There is a growing need to connect smallholder farmers and local communities within sourcing strategies, ensuring they are not just beneficiaries but active partners in the transition towards more responsible and resilient supply networks.

The funding support from Croda Foundation and other dedicated corporate partners has enabled Kaleka to work in jurisdictions and with communities for much of the last decade. **This long-term engagement has been critical in building trust and relationships, allowing projects to weather political transitions and maintain continuity in sustainability efforts.**

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## **Strengthening the Link Between Markets, Policy, and Smallholders**

A key aspect of the visit was engaging with local governments, village leaders, and farming communities to understand their perspectives on the jurisdictional approach. In Seruyan District, Kaleka has been supporting a jurisdictional approach convening together multiple stakeholders to integrate conservation, smallholder empowerment, and sustainable production. However, scaling such a landscape approach requires greater market alignment and investment.

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During discussions with Seruyan’s local government, the challenges of certification and access to premium markets were front and center. The key question remains: **how can economic incentives be created for smallholders that ensure meeting certification requirements while maintaining productivity?** As Anindya Prima Hadi, Director of Sustainable Rural Development of Kaleka, reflected, *"Smallholders need not just financing but also long-term market certainty. If they are not meaningfully integrated into global value chains, sustainability efforts will remain fragmented. Their resilience—and their livelihoods—depend on it."*

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## **An example from Batu Agung Village**

One of the biggest hurdles in the jurisdictional approach is ensuring that smallholders meet sustainability standards without disrupting their livelihoods. Many lack access to the technical support and financial resources necessary for compliance. In Batu Agung, for example, while farmers are progressing through RSPO certification, many still require assistance with record-keeping, farm activity monitoring, and understanding sustainability criteria.

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 ![Discussions with Batu Agung’s community on sustainable palm oil practices](https://petani.s3-ap-southeast-1.amazonaws.com/blogentity/b6e08a6f-cbaa-4147-80df-5f12cc26712d.png) \n Batu Agung Village is a rural community in Central Kalimantan with a population of 1,620 people. Agriculture, particularly oil palm farming, is the backbone of the village economy. Under the*Gawi Bapakat program, Batu Agung is categorized as a ‘certification village,’ meaning it receives targeted support to help oil palm farmers achieve sustainable certification.*

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Kaleka addresses this gap by providing direct support to smallholder associations, enhancing their capacity, and ensuring market access upon certification. The visit to Batu Agung provided a deeper understanding of the journey these farmers are undertaking. *Marni, an oil palm smallholder, is a prime example of this shift—owning just over a hectare of land, he has been actively engaged in the RSPO certification process since 2024.* Farmers like Marni are receiving guidance on best agricultural practices, record-keeping, and compliance with sustainability standards, ensuring they can access international markets while maintaining their productivity.

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## **The Role of Large Plantation Companies in Sustainability**

The visit to a mill owned by Minamas Plantation, part of SD Guthrie, **highlighted the critical role that large plantation companies play in integrating third-party sourcing, particularly from smallholders.** This becomes even more relevant if the postponed European Union Deforestation Regulation (EUDR) is eventually implemented, thus placing stricter demands on supply chain transparency and responsible sourcing.

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 ![The Croda team explores Nipah sugar production](https://petani.s3-ap-southeast-1.amazonaws.com/blogentity/ce90fab2-0d8b-4b6b-aba1-6b786b96fc99.jpg)

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One of the key takeaways from this discussion was the importance of proactive engagement. The transition towards more sustainable sourcing is not just about compliance but about fostering long-term collaboration between plantations, smallholders, and buyers. Companies that invest in building these connections—through technical support, certification assistance, and secure market access—will be better positioned for long-term success in an increasingly regulated global market.

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## **Sustainable Villages: A Scalable Model for the Future**

While large plantation companies play a crucial role in supply chain sustainability, the real foundation of long-term change lies in the communities themselves. This is where models like the Sustainable Village Program become invaluable—aligning conservation with economic incentives to create a replicable, scalable solution.

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The Sustainable Village Program (Gawi Bapakat initiative) provides a blueprint for integrating conservation with economic resilience. By committing to designated conservation areas, participating villages gain incentives through high-value commodity development, such as sustainable palm oil certification, agroforestry crops, and non-timber forest products.

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 ![Showcasing Mendawai Seberang’s pineapple agroforestry and its processed products](https://petani.s3-ap-southeast-1.amazonaws.com/blogentity/e64aebc2-0e95-4310-b257-c077301766fc.png)

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In Mendawai Seberang, the community’s commitment to managing 4,325 hectares of social forestry exemplifies how conservation can coexist with economic development. The village’s pineapple agroforestry project, supported by the Sustainable Village Program, generates additional income while preserving forest cover. During their visit, Croda representatives engaged with local farmers who shared their experiences balancing sustainability with their livelihoods. The discussions reinforced the importance of continued investment in sustainable commodity production as a means of strengthening conservation commitments.

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## **Looking Ahead: Scaling Systemic Change**

Kaleka remains committed to bridging the gap between corporate sustainability commitments and real impact on the ground. The challenge is not just meeting regulations but leading the change - ensuring that sustainability is embedded in business models, supply chains and decision-making processes.

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 ![Exploring the permanent nursery in Rungau Raya.](https://petani.s3-ap-southeast-1.amazonaws.com/blogentity/a8778e81-56ba-4a5f-a24e-3ad16ad7982e.png)

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Collaboration across sectors—government, businesses, and local communities—creates new possibilities for meaningful long-term solutions. As the world shifts towards more sustainable supply chains, there is an opportunity to redefine how businesses engage with communities and how markets reward responsible practices.

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For Kaleka, the path forward is clear—building partnerships that create lasting impact and advocating for systemic change that benefits both people and nature. We wish to express our deep gratitude to our funders, including foundations like Croda Foundation and other corporate partners, for their ongoing commitment to this journey. The support is instrumental in advancing sustainability efforts in Seruyan and beyond, ensuring that landscape-level initiatives continue to thrive and deliver meaningful impact.

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*[The Mozaik initiative](https://kaleka.id/strategic-initiative/the-mosaik-initiative) focuses on enhancing sustainability in commodity production landscapes. Funded by Croda Foundation and other dedicated corporate partners, aiming to integrate conservation efforts with sustainable agricultural practices. Key activities include capacity building for smallholders, promoting agroforestry systems, and supporting jurisdictional certification processes.*

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